I think the difference between a hobby site and a large social media/ conversation platform is a site for your personal use without a comment section etc likely isn't covered, whereas a site handling users personal data and transferring data between jurisdictions is.

I absolutely agree there is no way I would want to navigate GDPR and other regulations as an individual and therefore no way I would host a Lemmy instance! It's a big and complex undertaking, where basic compliance isn't too difficult but dealing with any issues that you or someone else causes that impact you is a nightmare.